SENATE AMENDED
PRIOR PRINTER'S NO. 2178
PRINTER'S NO. 3373
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1552
Session of
2015
INTRODUCED BY ROAE, SONNEY, MALONEY, JAMES, DRISCOLL, TOPPER,
DAVIS, PHILLIPS-HILL, MILLARD, READSHAW, WATSON, EVANKOVICH,
RAPP, MURT, SANTORA, REED, SAYLOR, GROVE, WARD, KORTZ, DUSH
AND SCHEMEL, SEPTEMBER 16, 2015
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, MAY 17, 2016
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in preliminary provisions, providing
for powers and duties of the Secretary of Education.; IN
REIMBURSEMENTS BY COMMONWEALTH AND BETWEEN SCHOOL DISTRICTS,
PROVIDING FOR STUDENT-WEIGHTED BASIC EDUCATION FUNDING AND
FOR SUPPLEMENTAL PAYMENT OF BASIC EDUCATION FUNDING FOR 2014-
2015 SCHOOL YEAR; AND MAKING AN APPROPRIATION.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding a
section SECTIONS to read:
Section 124. Powers and Duties of the Secretary of
Education.--(a) On behalf of the Commonwealth, the Secretary of
Education shall have the authority and duty to enter into and
administer membership in a regional compact and an interstate
reciprocity agreement for the provision of postsecondary
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distance education by the following:
(1) Institutions of higher education to students in other
states, territories and districts party to such agreement.
(2) Postsecondary institutions in other states, territories
or districts that are a party to such agreement to students in
this Commonwealth.
(b) The Department of Education may charge administrative
fees to institutions of higher education that choose to
participate in the agreement, not to exceed the amount necessary
to pay the administrative costs of the agreement. The department
may promulgate final-omitted regulations pursuant to the act of
June 25, 1982 (P.L.633, No.181), known as the "Regulatory Review
Act," necessary to implement this subsection, provided that such
final-omitted regulations shall expire June 30, 2018. After June
30, 2018, any revisions to the administrative fees charged under
this subsection shall be made through regulations promulgated
under the Regulatory Review Act.
(c) The Postsecondary Distance Education Interstate
Reciprocity Agreement Restricted Receipts Account is established
as a special restricted receipts account within the General Fund
of the State Treasury, from which the Department of Education
may draw moneys for the purpose of agreement expenses, the costs
of administering and implementing the agreement and all other
costs associated with the activities of the department related
to implementation of this section. This account shall consist of
all administrative fees deposited under subsection (b) and State
funds appropriated for use under this section. The restricted
receipts account shall be subject to audit by the Auditor
General.
(d) For purposes of this section, "institution of higher
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education" shall have the meaning given in section 118.
Section 2. This act shall take effect immediately.
SECTION 2502.53. STUDENT-WEIGHTED BASIC EDUCATION FUNDING.--
(A) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE STUDENT-
WEIGHTED BASIC EDUCATION FUNDING FORMULA IS THE RESULT OF THE
WORK OF THE BASIC EDUCATION FUNDING COMMISSION ESTABLISHED
PURSUANT TO SECTION 123.
(B) FOR THE 2015-2016 SCHOOL YEAR AND EACH SCHOOL YEAR
THEREAFTER, THE COMMONWEALTH SHALL PAY TO EACH SCHOOL DISTRICT A
BASIC EDUCATION FUNDING ALLOCATION WHICH SHALL CONSIST OF THE
FOLLOWING:
(1) AN AMOUNT EQUAL TO THE SCHOOL DISTRICT'S BASIC EDUCATION
FUNDING ALLOCATION FOR THE 2013-2014 SCHOOL YEAR .
(2) A STUDENT-BASED ALLOCATION TO BE CALCULATED AS FOLLOWS:
(I) MULTIPLY THE SCHOOL DISTRICT'S STUDENT-WEIGHTED AVERAGE
DAILY MEMBERSHIP BY THE MEDIAN HOUSEHOLD INCOME INDEX AND LOCAL
EFFORT CAPACITY INDEX.
(II) MULTIPLY THE PRODUCT IN SUBPARAGRAPH (I) BY THE
DIFFERENCE BETWEEN THE AMOUNT APPROPRIATED FOR THE ALLOCATION OF
BASIC EDUCATION FUNDING TO SCHOOL DISTRICTS AND THE AMOUNT
APPROPRIATED FOR THE ALLOCATION IN PARAGRAPH (1).
(III) DIVIDE THE PRODUCT IN SUBPARAGRAPH (II) BY THE SUM OF
THE PRODUCTS IN SUBPARAGRAPH (I) FOR ALL SCHOOL DISTRICTS.
(C) FOR THE PURPOSE OF THIS SECTION:
(1) STUDENT-WEIGHTED AVERAGE DAILY MEMBERSHIP FOR A SCHOOL
DISTRICT SHALL BE THE SUM OF THE FOLLOWING:
(I) THE AVERAGE OF THE SCHOOL DISTRICT'S THREE MOST RECENT
YEARS' AVERAGE DAILY MEMBERSHIP.
(II) THE ACUTE POVERTY AVERAGE DAILY MEMBERSHIP CALCULATED
AS FOLLOWS:
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(A) MULTIPLY THE SCHOOL DISTRICT'S ACUTE POVERTY PERCENTAGE
BY ITS AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY SIX-TENTHS (0.6).
(III) THE POVERTY AVERAGE DAILY MEMBERSHIP CALCULATED AS
FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S POVERTY PERCENTAGE BY ITS
AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY THREE-TENTHS
(0.3).
(IV) THE CONCENTRATED POVERTY AVERAGE DAILY MEMBERSHIP FOR
QUALIFYING SCHOOL DISTRICTS WITH AN ACUTE POVERTY PERCENTAGE
EQUAL TO OR GREATER THAN THIRTY PERCENT (30%), TO BE CALCULATED
AS FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S ACUTE POVERTY PERCENTAGE
BY ITS AVERAGE DAILY MEMBERSHIP.
(B) MULTIPLY THE PRODUCT IN CLAUSE (A) BY THREE-TENTHS
(0.3).
(V) THE NUMBER OF THE SCHOOL DISTRICT'S LIMITED ENGLISH-
PROFICIENT STUDENTS MULTIPLIED BY SIX-TENTHS (0.6).
(VI) THE AVERAGE DAILY MEMBERSHIP FOR THE SCHOOL DISTRICT'S
STUDENTS ENROLLED IN CHARTER SCHOOLS AND CYBER CHARTER SCHOOLS
MULTIPLIED BY TWO-TENTHS (0.2).
(VII) THE SPARSITY/SIZE ADJUSTMENT FOR QUALIFYING SCHOOL
DISTRICTS WITH A SPARSITY/SIZE RATIO GREATER THAN THE
SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE
SPARSITY/SIZE RATIO FOR ALL SCHOOL DISTRICTS CALCULATED AS
FOLLOWS:
(A) DIVIDE THE SCHOOL DISTRICT'S SPARSITY/SIZE RATIO BY THE
SPARSITY/SIZE RATIO THAT REPRESENTS THE SEVENTIETH PERCENTILE
FOR ALL SCHOOL DISTRICTS.
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(B) SUBTRACT ONE (1) FROM THE QUOTIENT IN CLAUSE (A).
(C) MULTIPLY THE SUM OF SUBPARAGRAPHS (I), (II), (III),
(IV), (V) AND (VI) BY THE AMOUNT IN CLAUSE (B).
(D) MULTIPLY THE PRODUCT IN CLAUSE (C) BY SEVEN-TENTHS
(0.7).
(2) LOCAL EFFORT INDEX FOR A SCHOOL DISTRICT SHALL BE
CALCULATED AS FOLLOWS:
(I) DETERMINE THE SCHOOL DISTRICT'S LOCAL EFFORT FACTOR
CALCULATED AS FOLLOWS:
(A) MULTIPLY THE SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME
BY ITS NUMBER OF HOUSEHOLDS.
(B) DIVIDE THE SCHOOL DISTRICT'S LOCAL TAX-RELATED REVENUE
BY THE PRODUCT IN CLAUSE (A).
(C) MULTIPLY THE QUOTIENT IN CLAUSE (B) BY ONE THOUSAND
(1,000).
(D) DIVIDE THE PRODUCT IN CLAUSE (C) BY THE STATEWIDE MEDIAN
OF CLAUSE (C).
(II) DETERMINE THE SCHOOL DISTRICT'S EXCESS SPENDING FACTOR,
TO BE CALCULATED AS FOLLOWS:
(A) DIVIDE THE SCHOOL DISTRICT'S CURRENT EXPENDITURES BY THE
SUM OF ITS AVERAGE DAILY MEMBERSHIP AND THE AMOUNTS IN PARAGRAPH
(1)(II), (III), (IV), (V), (VI) AND (VII).
(B) DIVIDE THE QUOTIENT IN CLAUSE (A) BY THE STATEWIDE
MEDIAN OF CLAUSE (A).
(C) DIVIDE ONE (1) BY THE QUOTIENT IN CLAUSE (B).
(III) MULTIPLY THE SCHOOL DISTRICT'S LOCAL EFFORT FACTOR BY
THE LESSER OF ONE (1) OR THE SCHOOL DISTRICT'S EXCESS SPENDING
FACTOR.
(3) LOCAL CAPACITY INDEX FOR A QUALIFYING SCHOOL DISTRICT
SHALL BE CALCULATED AS FOLLOWS:
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(I) DIVIDE THE SCHOOL DISTRICT'S LOCAL TAX-RELATED REVENUE
BY THE SUM OF ITS MARKET VALUE AND PERSONAL INCOME VALUATION.
(II) MULTIPLY THE SUM OF THE SCHOOL DISTRICT'S MARKET VALUE
AND PERSONAL INCOME VALUATION BY THE STATEWIDE MEDIAN OF
SUBPARAGRAPH (I).
(III) DETERMINE THE SCHOOL DISTRICT'S LOCAL CAPACITY PER
STUDENT BY DIVIDING THE PRODUCT IN SUBPARAGRAPH (II) BY THE SUM
OF ITS AVERAGE DAILY MEMBERSHIP AND THE AMOUNTS IN PARAGRAPH (1)
(II), (III), (IV), (V), (VI) AND (VII).
(IV) IF THE SCHOOL DISTRICT'S LOCAL CAPACITY PER STUDENT IS
LESS THAN THE STATEWIDE MEDIAN OF SUBPARAGRAPH (III):
(A) DIVIDE THE SCHOOL DISTRICT'S LOCAL CAPACITY PER STUDENT
BY THE STATEWIDE MEDIAN.
(B) SUBTRACT THE QUOTIENT IN CLAUSE (A) FROM ONE (1).
(4) LOCAL EFFORT CAPACITY INDEX FOR A SCHOOL DISTRICT SHALL
EQUAL THE SUM OF ITS LOCAL EFFORT INDEX AND LOCAL CAPACITY
INDEX.
(5) THE DATA USED TO CALCULATE THE FACTORS AND INDEXES IN
THIS SECTION SHALL BE BASED ON THE MOST RECENT YEARS FOR WHICH
DATA IS AVAILABLE AS DETERMINED BY THE DEPARTMENT OF EDUCATION.
(D) FOR PURPOSES OF THIS SECTION:
(1) "ACUTE POVERTY PERCENTAGE" SHALL MEAN THE NUMBER OF
CHILDREN SIX (6) TO SEVENTEEN (17) YEARS OF AGE LIVING IN A
HOUSEHOLD WHERE THE RATIO OF INCOME TO POVERTY IS LESS THAN ONE
HUNDRED PERCENT (100%) OF THE FEDERAL POVERTY GUIDELINES DIVIDED
BY THE TOTAL NUMBER OF CHILDREN SIX (6) TO SEVENTEEN (17) YEARS
OF AGE AS DETERMINED BY THE MOST RECENT FIVE-YEAR ESTIMATE OF
THE UNITED STATES CENSUS BUREAU'S AMERICAN COMMUNITY SURVEY.
(2) "HOUSEHOLDS" SHALL MEAN THE NUMBER OF HOUSEHOLDS IN EACH
SCHOOL DISTRICT AS DETERMINED BY THE MOST RECENT FIVE-YEAR
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ESTIMATE OF THE UNITED STATES CENSUS BUREAU'S AMERICAN COMMUNITY
SURVEY.
(3) "LOCAL TAX-RELATED REVENUE" SHALL MEAN THE SUM OF SCHOOL
DISTRICT REVENUES FOR STATE PROPERTY TAX REDUCTION ALLOCATION,
TAXES LEVIED AND ASSESSED, DELINQUENCIES ON TAXES LEVIED AND
ASSESSED, REVENUE FROM LOCAL GOVERNMENT UNITS, AND OTHER LOCAL
REVENUES NOT SPECIFIED ELSEWHERE, AS DESIGNATED IN THE MANUAL OF
ACCOUNTING AND FINANCIAL REPORTING FOR PENNSYLVANIA PUBLIC
SCHOOLS.
(4) "MEDIAN HOUSEHOLD INCOME" SHALL MEAN THE MEDIAN
HOUSEHOLD INCOME FOR SCHOOL DISTRICTS AND THE STATE AS
DETERMINED BY THE MOST RECENT FIVE-YEAR ESTIMATE OF THE UNITED
STATES CENSUS BUREAU'S AMERICAN COMMUNITY SURVEY.
(5) "MEDIAN HOUSEHOLD INCOME INDEX" SHALL MEAN A NUMBER
CALCULATED AS FOLLOWS:
(I) DIVIDE A SCHOOL DISTRICT'S MEDIAN HOUSEHOLD INCOME BY
THE STATE MEDIAN HOUSEHOLD INCOME.
(II) DIVIDE ONE (1) BY THE QUOTIENT IN SUBPARAGRAPH (I).
(6) "POVERTY PERCENTAGE" SHALL MEAN THE NUMBER OF CHILDREN
SIX (6) TO SEVENTEEN (17) YEARS OF AGE LIVING IN A HOUSEHOLD
WHERE THE RATIO OF INCOME TO POVERTY IS BETWEEN ONE HUNDRED
PERCENT (100%) AND ONE HUNDRED EIGHTY-FOUR PERCENT (184%) OF THE
FEDERAL POVERTY GUIDELINES DIVIDED BY THE TOTAL NUMBER OF
CHILDREN SIX (6) TO SEVENTEEN (17) YEARS OF AGE AS DETERMINED BY
THE MOST RECENT FIVE-YEAR ESTIMATE OF THE UNITED STATES CENSUS
BUREAU'S AMERICAN COMMUNITY SURVEY.
(7) "SIZE RATIO" SHALL MEAN A NUMBER CALCULATED AS FOLLOWS:
(I) DIVIDE THE AVERAGE OF A SCHOOL DISTRICT'S THREE MOST
RECENT YEARS' AVERAGE DAILY MEMBERSHIP BY THE STATEWIDE AVERAGE
OF THE THREE MOST RECENT YEARS' AVERAGE DAILY MEMBERSHIP FOR ALL
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SCHOOL DISTRICTS.
(II) MULTIPLY THE AMOUNT IN SUBPARAGRAPH (I) BY FIVE-TENTHS
(0.5).
(III) SUBTRACT THE AMOUNT IN SUBPARAGRAPH (II) FROM ONE (1).
(8) "SPARSITY RATIO" SHALL MEAN A NUMBER CALCULATED AS
FOLLOWS:
(I) DIVIDE THE AVERAGE OF A SCHOOL DISTRICT'S THREE MOST
RECENT YEARS' AVERAGE DAILY MEMBERSHIP BY ITS TOTAL SQUARE MILES
AS REPORTED IN THE LATEST DECENNIAL CENSUS AS REPORTED BY THE
UNITED STATES CENSUS BUREAU.
(II) DIVIDE THE STATE TOTAL AVERAGE DAILY MEMBERSHIP BY THE
STATE TOTAL SQUARE MILES.
(III) DIVIDE THE QUOTIENT IN SUBPARAGRAPH (I) BY THE
QUOTIENT IN SUBPARAGRAPH (II).
(IV) MULTIPLY THE QUOTIENT IN SUBPARAGRAPH (III) BY FIVE-
TENTHS (0.5).
(V) SUBTRACT THE PRODUCT IN SUBPARAGRAPH (IV) FROM ONE (1).
(9) "SPARSITY/SIZE RATIO" SHALL MEAN A NUMBER CALCULATED BY
ADDING THE FOLLOWING AMOUNTS:
(I) THE SPARSITY RATIO MULTIPLIED BY FOUR-TENTHS (0.4).
(II) THE SIZE RATIO MULTIPLIED BY SIX-TENTHS (0.6).
SECTION 2502.54. SUPPLEMENTAL PAYMENT OF BASIC EDUCATION
FUNDING FOR THE 2014-2015 SCHOOL YEAR.--(A) THE COMMONWEALTH
SHALL MAKE THE FOLLOWING SUPPLEMENTAL BASIC EDUCATION FUNDING
PAYMENTS FOR THE 2014-2015 SCHOOL YEAR AS FOLLOWS:
(1) FOR A THIRD CLASS SCHOOL DISTRICT IDENTIFIED IN
FINANCIAL WATCH STATUS UNDER SECTION 611-A TO CURTAIL ITS
EDUCATIONAL PROGRAM AND ASSIGN PUPILS TO A NEIGHBORING SCHOOL
DISTRICT THROUGH A WRITTEN AGREEMENT, AN AMOUNT OF THREE MILLION
DOLLARS ($3,000,000).
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(2) FOR A SECOND CLASS SCHOOL DISTRICT DECLARED TO BE IN
FINANCIAL RECOVERY STATUS UNDER SECTION 621-A(A)(1)(I)(B) TO
REDUCE ITS STRUCTURAL DEFICIT, AN AMOUNT EQUAL TO TWELVE MILLION
DOLLARS ($12,000,000).
(B) PAYMENTS MADE UNDER THIS SECTION SHALL BE DEEMED TO BE
PART OF THE SCHOOL DISTRICT'S ALLOCATION AMOUNT UNDER SECTION
2502.53(B)(1) FOR THE 2015-2016 SCHOOL YEAR AND EACH YEAR
THEREAFTER.
SECTION 2. THE SUM OF $15,000,000 IS HEREBY APPROPRIATED TO
THE DEPARTMENT OF EDUCATION FOR THE PURPOSE OF SUPPLEMENTAL
PAYMENTS OF BASIC EDUCATION FUNDING FOR THE 2014-2015 SCHOOL
YEAR IN ACCORDANCE WITH SECTION 2502.54 OF THE ACT.
SECTION 3. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
(1) THE ADDITION OF SECTION 2502.53 OF THE ACT SHALL
TAKE EFFECT JULY 1, 2016, OR IMMEDIATELY, WHICHEVER IS LATER.
(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
IMMEDIATELY.
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